Diamond Sports, a group of regional sports channels, said it has reached a restructuring agreement including an investment from Amazon.com Inc (NASDAQ:AMZN, ETR:AMZ) which will allow it to avoid bankruptcy and continue its operations.
The company said it has reached an agreement with certain of its debt holders for $450 million in financing to support its operations and pay $350 million in debts.
It said Amazon has also committed to make a minority investment in Diamond Sports and will provide access to Diamond’s services via Prime Video.
Customers will be able to purchase direct-to-consumer (DTC) access to stream local Diamond channels, including live Major League Baseball, National Basketball Association, and National Hockey League games and pre-and post-game programming, Diamond Sports said.
The company also reached an agreement with its parent Sinclair to settle pending litigation between the companies.
Per the agreement, Sinclair will pay Diamond $495 million in cash and will provide ongoing management and transition services to support its reorganization and separation from Sinclair.
“We are thrilled to have reached a comprehensive restructuring agreement that provides a detailed framework for a reorganization plan and substantial new financing that will enable Diamond to operate and thrive beyond 2024,” Diamond CEO David Preschlack said in a statement.
“We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business.”